Under what circumstances can a Crave Cookies franchisee make sales via delivery?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.7 Method of Sale. Franchisee shall make sales only at the Location or by off-site catering services, or at temporary event locations (e.g. street festivals). Unless otherwise approved or required by Crave Cookies Franchising, LLC, Franchisee shall not make sales by any other means, including without limitation by delivery by Franchisee, delivery by third-party service, via a food truck, or at satellite locations. Crave Cookies Franchising, LLC retains the right to determine (and to change at any time) a territory outside of which Franchisee cannot offer catering. If Crave Cookies Franchising, LLC permits (or requires delivery), Crave Cookies Franchising, LLC retains the right to determine (and to change at any time) a territory outside of which Franchisee cannot offer delivery.
- 7.8 Royalty on Third-Party Delivery Service. If Crave Cookies Franchising, LLC requires or approves Franchisee's use of a third-party delivery service, Gross Sales on deliveries will be calculated on the amount paid by the customer to the delivery service (not counting any delivery fee, service charge, or gratuity paid by the customer), rather than the amount paid by the delivery service to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, franchisees are generally restricted to making sales only at the physical location of their store. However, there are exceptions where delivery sales are permitted. A Crave Cookies franchisee can make sales via off-site catering services or at temporary event locations such as street festivals.
Delivery sales are not allowed unless specifically approved or required by Crave Cookies Franchising, LLC. This means that franchisees cannot independently offer delivery services, whether through their own employees or by using third-party delivery services, without the franchisor's explicit consent. Crave Cookies Franchising, LLC, maintains the right to determine and change the territories where franchisees can offer catering or delivery services if such services are permitted or required.
If Crave Cookies Franchising, LLC, approves or requires the use of a third-party delivery service, the royalty calculation will be based on the amount the customer pays to the delivery service, excluding any delivery fees, service charges, or gratuities. This could impact the franchisee's royalty obligations, as it is based on the customer's payment to the third-party rather than the amount the franchisee receives from the delivery service.
Prospective franchisees should clarify with Crave Cookies Franchising, LLC, the specific conditions under which delivery is allowed, the process for obtaining approval, and any associated requirements or restrictions. Understanding these details is crucial for planning their business operations and financial projections.